- Salesforce is acquiring Own Company for $1.9 billion to strengthen its data security and privacy products.
- Salesforce is using acquisitions, like Own Company and Tenyx, to boost revenue growth and expand its product offerings.
OUR TAKE
This highlights Salesforce’s strategic move to strengthen its position in the growing market for data security and privacy, which is increasingly crucial for businesses facing rising threats from cyberattacks and data loss. The acquisition of Own Company shows Salesforce’s commitment to expanding its offerings in this area, potentially giving it a competitive edge.
–Jennifer Yu, BTW reporter
What happened
Salesforce announced plans on Thursday to acquire Own Company, a data protection and management provider, for $1.9 billion in cash. The acquisition aims to strengthen Salesforce’s data security and privacy offerings amid rising customer concerns over data loss from system failures, human error, and cyberattacks.
Salesforce expects the deal to positively impact free cash flow by the second year and confirmed that it will not affect its fiscal 2025 forecast or capital return programme. Own Company, backed by investors like BlackRock and Tiger Global, has raised over $500 million and partnered with Microsoft Dynamics 365.
This follows Salesforce’s recent agreement to acquire AI firm Tenyx. After last year’s focus on share buybacks, the company is revisiting acquisitions to boost revenue growth.
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Why it’s important
As businesses increasingly prioritise data protection due to rising cybersecurity threats, Salesforce’s acquisition of Own Company enhances its ability to offer advanced data security and privacy solutions. This move could attract more customers concerned with safeguarding their data, positioning Salesforce as a stronger player in the security space.
Besides, the acquisition marks a shift in Salesforce’s approach to growth. After prioritising share buybacks under pressure from activist investors, Salesforce is now refocusing on acquisitions to drive revenue growth.
By adding Own Company and Tenyx to its portfolio, Salesforce aims to accelerate innovation in key areas like data protection and AI, which are becoming essential components for modern enterprises.
